LNG Project Research Articles

Scenario-Based Assessment of Implementing Large-Capacity LNG Projects in Russian Arctic Zone

Scenario-Based Assessment of Implementing Large-Capacity LNG Projects in Russian Arctic Zone

Carbon capture and sustainability in LNG projects: Engineering lessons for a greener future

Carbon capture and sustainability in LNG projects: Engineering lessons for a greener future

How environmental data enables intelligent navigation: Factors assessment of affecting the navigation in the Northeast Arctic Route

Due to the more favorable navigational environment and higher safety along Northeast Arctic Route, this route is being used more and more frequently for international shipping. In this research, the factor analysis method is applied to assess the navigational environment of each sea area in the Northeast Arctic Route, revealing the effects of Arctic navigation influence factor on the navigational environment, and analyzing the change trend of the navigational environment of different sea areas in different seasons. Further, the effects of multiple factors on the number of voyages are discussed through multiple stepwise regression model, including the navigational environment score, geopolitical risk, export & import trade and the probability of pollution accidents, then the Interrupted time series analysis (ITSA) method combined with seasonal decomposition is explored the effect of emergencies on the number of voyages on the Northeast Arctic Route. The number of voyages on the Northeast Arctic Route has been altered to varying degrees by the occurrence of various emergencies. Further, the Yamal LNG project and the Russian-Ukrainian conflict have a significant effect on the number of voyages, while the Covid-19 epidemic has a lesser effect on the number of voyages.

Temporal frictions: competing futures of LNG in Tanzania

ABSTRACT This paper explores the temporalities behind resource nationalism and the liquefied natural gas project (LNG) in Tanzania. At a cost of $42 billion, the LNG project would be one of the most capital-intensive projects in Africa and would allow for export of Tanzanian gas. Focusing on the LNG negotiations during the rule of John Pombe Magufuli, this paper uses interviews with key stakeholders involved in the negotiation and planning of the LNG project, both from the government and the hydrocarbon sector. It argues that competing imaginaries of the future of the gas sector in Tanzania has led to friction between actors and has resulted in slow progression for the project. Central to this has been competing short-, medium-, and long-term time horizons, contrasting market and electoral cycles, and differing imaginaries of what the future of LNG holds for the country. This paper’s core argument is that competing perceptions of the future between different actors involved in the project, have allowed for friction between actors. At its core, this is through how the future was constructed for actors, be it through development strategies, price forecasts, or different imagined futures.

INTEGRATING THE ARCTIC INTO THE BELT AND ROAD INITIATIVE: ECONOMIC INTERACTIONS BETWEEN CHINA AND RUSSIA

This article delves into the intricate web of Sino-Russian cooperation within the Arctic, spotlighting the synergistic ventures like the Yamal LNG project as emblematic of broader collaboration in energy, infrastructure development, and geopolitical strategy. It outlines China's proactive stance in leveraging Arctic resources and the Northern Sea Route (NSR) to diversify its energy supply and integrate this polar pathway into its monumental "Belt and Road" initiative. Despite geographical remoteness, China's burgeoning interest in Arctic affairs, primarily driven by economic, geopolitical, and environmental objectives, underscores a strategic alignment with Russia's Arctic dominion. However, this partnership navigates through a spectrum of collaborative and contentious dynamics, particularly around Arctic governance, environmental stewardship, and the exploitation of hydrocarbon resources. While Russia gains investment and technological prowess, enhancing its sovereignty over Arctic navigation and resource utilization, China secures a vital energy lifeline and asserts its global maritime ambitions. Nonetheless, divergent views on Arctic governance and environmental policies pose challenges to this alliance. The article posits that despite these ideological divergences, the mutual benefits of Sino-Russian cooperation in the Arctic will likely foster a stronger, more integrated partnership, potentially reshaping Arctic geopolitics and global energy markets.

A review of sustainable project management practices in modern LNG industry initiatives

This paper presents a comprehensive review of sustainable project management practices within the modern LNG industry, aiming to analyze the strategies, challenges, and opportunities associated with sustainable development in LNG initiatives. The literature review encompasses an examination of sustainable project management principles, emphasizing the importance of environmental stewardship, social responsibility, and economic viability in LNG projects. Case studies from various LNG initiatives worldwide are analyzed to identify best practices and frameworks for integrating sustainability into project management methodologies. These studies highlight innovative approaches such as carbon footprint reduction, community engagement programs, and economic diversification strategies, demonstrating the multifaceted nature of sustainable project management in the LNG sector. Methodologically, this review adopts a systematic approach, utilizing established criteria for selecting and analyzing relevant literature and case studies. Data collection methods include extensive literature searches and case study analysis to gather insights into the implementation and effectiveness of sustainable project management practices in the LNG industry. The findings reveal a growing trend towards the adoption of sustainable practices in LNG projects, driven by regulatory requirements, investor preferences, and stakeholder expectations. However, several challenges persist, including technological limitations, regulatory complexities, and cost implications. Nonetheless, these challenges present opportunities for innovation and collaboration, fostering the development of new technologies and strategies to enhance sustainability in LNG project management. In conclusion, this review underscores the importance of sustainable project management in the modern LNG industry, emphasizing the need for proactive measures to address environmental, social, and economic concerns while meeting energy demands. The insights provided offer valuable guidance for industry stakeholders, policymakers, and researchers seeking to advance sustainability objectives in LNG initiatives.

Analysis of the Impacts of Small-Scale LNG Projects for Energy Supply of the North Region of Brazil: The Case of Roraima

Natural gas is a fossil resource less polluting compared to oil and coal. Despite the large volumes of proven reserves in Brazil, exploration and production are low because of several factors like the lack of infrastructure along several regions of the country, the regulatory model in the consolidation phase, and legal impasses regarding tariffs. In the Brazilian north region, the expansion of the natural gas market is even more complex due to regional specificities both in relation to natural characteristics and the existence of conflicts of interest that impact regional development. However, natural gas has been gaining notoriety over the years, with the existence of large projects that foster the gas market in some states in the region. This article aimed to discuss the impacts of increasing the participation of natural gas in the regional energy matrix through small-scale LNG projects, analyzing the case of the state of Roraima and the impacts of the Azulão-Jaguatirica II Project on this state. As a result, this research presented an evaluation of the existent regulation in Brazilian’s northern states, a bibliometric analysis of natural gas in the Brazilian Amazon which demonstrated how little the topic is covered, and a SWOT matrix about the impacts of natural gas in regional energy supply in order to help future decision-making on the subject.

Resource sufficiency of large capacity LNG projects in Russia

Relevance. Qualitative and quantitative transformations taken place under the impact of a number of interconnected facts, destabilizing for the world economy. Contemporary conditions direct gas producing countries, including Russia, towards enhancing the competitive advantages to maintain their positions in the world gas market, first of all, towards increasing the share of liquefied natural gas in the market. It is impossible without sufficient resource base to expand production of operating large capacity LNG projects. Aim. To analyze the effect of management-economic mechanisms on the expansion of resource sufficiency to provide the production of liquefied natural gas. Object. Large capacity LNG projects. Subject. Financial and fiscal framework applied for implementation of large capacity LNG projects. Methods. Empirical and economic-statistical. Results. Institutional incentives for provision of resource sufficiency have allowed the authors to reveal different approaches to stimulating resource sufficiency depending on the business tax systems, implementing LNG projects. The paper demonstrates differentiation in natural resource users’ reaction to tax benefits. Using licensing system a resource user intensifies his activities in development of hard-to-recover reserves, which increases resource sufficiency of LNG projects. Whereas using treaty system (which is, in fact, incentive framework of taxation) the effect is insignificant to stimulate geological exploration. This in future may occur as a decrease in liquefied natural gas production as well as possible negative social-economic consequences in a region. The authors suggest legislative consolidation for business operating in the condition of production sharing agreement, of mandatory minimum – 10 % of net profit spent for geological exploration.

Экономическая конъюнктура арктического природного газа в новых геополитических условиях

The special military operation (SMO) organically fits into the logic of the century-long confrontation between Russia and Britain, and later — the USA, known since the late 18th century as the “Great Game”. One of the goals of the SMO on a national scale is not only to restore Russia’s dominance in the Black Sea and the Sea of Azov, but also to counteract the achievement of such a goal by NATO countries. Russia uses various sources of funding the SMO, including oil and gas revenues of the Federal budget. Natural gas, unlike oil, is not under sanctions. There is nothing to compensate for the loss of revenues from the reduction of gas exports to Europe: practically all Russian pipelines (except for the Power of Siberia-1 with a capacity of only 38 billion m3) are oriented to the West; liquefied natural gas from the Yamal LNG and Sakhalin-2 projects is contracted for many years ahead. The EU countries have nothing to compensate for the lost volumes, except coal, but only Russian coal. Europe needs gas, Russia needs currency for the SMO, so it is necessary to find a solution to the problem.

Future Arctic regulatory interventions: discussing the impact of banning the use of heavy fuel oil

ABSTRACT The on-going reduction of sea-ice in the Arctic is now facilitating maritime activities in areas previously considered inaccessible. Numerous statistics indicate that fishing and tourism are clearly gaining momentum within the wider region under discussion. Furthermore, a certain number of private companies and state-affiliated actors are setting into motion plans for promoting the use of the so-called arctic passages, while certain interesting business projects are already underway; the Yamal LNG Project is for example clearly standing out. As human presence and operations are expected to intensify within that inherently risky region, the first aim of this paper is to qualitatively identify certain business opportunities associated with the Arctic and then highlight their interrelation with the prevailing patterns of maritime traffic. Additionally, on the basis of the report titled ‘Arctic Shipping Status Report – Heavy Fuel Oil (HFO) Use by Ships in the Arctic 2019' (ASSR #2) that was released during October 2020 by the Arctic Council's Working Group on the Protection of the Arctic Marine Environment (PAME), it explains the use of the various types of fuels in the region under discussion and highlights certain environmental risks. Finally, it briefly assesses the overall effectiveness of a (proposed) regulatory intervention of completely banning the use of HFO in the Arctic. This initiative can indeed have a positive contribution to protecting the region's pristine environment, but any regulations of this type must also consider the issue of fishing vessels, which are not covered under the scope of International Maritime Organization's (IMO) International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL).

Implementing UNDRIP in British Columbia in a Post-Yahey Context: What to Expect After the Yahey v. BC Litigation (S151727) and the Agreement on Industrial Development and Cumulative Effects Management

Almost two years after the ground-breaking verdict that the Supreme Court of British Columbia issued in the context of the Yahey v. BC litigation, on January 18, 2023, the Province of British Columbia signed a historic agreement with Blueberry River First Nation (BRFN) to address the cumulative effects of industrial development on the meaningful exercise of Treaty 8 rights in the Nation’s traditional territory while establishing collaborative approaches to land and resource planning. At the same time, the Province concluded agreements with other Treaty 8 First Nations (Doig River, Fort Nelson, McLeod Lake, Prophet River, Saulteau and West Moberly First Nations) concerning cumulative effects management, land planning and resource exploitation. These agreements have been praised as ground-breaking steps towards a new relationship that Government and Industry are eager to build with First Nations while healing the land and ensuring certainty for Industry to carry on resource development in British Columbia. This happens as the Province and the Federal Government move forward with their action plans to implement the United Nations Declaration on the Rights of Indigenous Peoples (hereafter UNDRIP) at the provincial and federal levels. It also comes at a time of significant challenges British Columbia must face, between new First Nations development projects (i.e., the Cedar LNG project) that the Province is actively supporting and recent litigations initiated by some First Nations to see UNDRIP adequately implemented in the BC legal framework (i.e., the trial initiated by Gitxaala and Ehattesaht First Nations concerning the lack of consultation regarding how BC grants mineral claims).

The Multiple Paths of Extraction, Dispossession, and Conflict in Mozambique: From Tete’s Coal Mines to Cabo Delgado’s LNG Projects

The Multiple Paths of Extraction, Dispossession, and Conflict in Mozambique: From Tete’s Coal Mines to Cabo Delgado’s LNG Projects

The ISCAP in the Shadow of the Russian-Ukrainian War

After the shock of the coronavirus, the world was hit by another blow: the Russian-Ukrainian war. This had a number of effects on the world, causing inflation and an energy price explosion. In the case of Africa, even food security was at risk due to the decline in Russian and Ukrainian grain. However, what is chaos for the world is an opportunity for jihadist movements to gain strength, as the burden on citizens increases social discontent. The situation in sub-Saharan East Africa is no different. The Islamic State's youngest province, ISCAP (Islamic State of Central Africa Province), created in 2019, remains dangerous, although the jihadist movements that make it up are not achieving the spectacular successes of the past. The Allied Democratic Forces (ADF) is based in the Congo-Uganda border region, while al-Shabaab in Mozambique has emerged in the northern province of Cabo Delgado. Their exact links to the Islamic State are not fully known, but recent reports suggest that the Islamic State of Somalia may be a center of back-and-forth communication between the two parties. The study focuses on ISCAP and the period since the Russian-Ukrainian war. In other words, what trends can be observed, how dangerous they could be and, most importantly, what opportunities they face and what kind of response is coming from the security forces. For the status of jihadist organisations, I refer to Stig Jarle Hansen's book Horn, Sahel and Rift, published in 2019. For the others, I rely on reports, analyses and, above all, recent news that may bring about changes in the way things have been done so far, one example being the LNG project being built in Cabo Delgado.

РИНОК СКРАПЛЕНОГО ПРИРОДНОГО ГАЗУ АВСТРАЛІЇ: ІСТОРІЯ, ШЛЯХИ ТА ПРОБЛЕМИ СУЧАСНОГО РОЗВИТКУ

The purpose of the conducted research is to analyze the formation and features of the modern development of the Australian liquefied natural gas market (LNG) in conditions of global instability. It is noted that one of the key factors in the success of LNG exports from Australia is the development of gas collection, transportation, and storage technologies. The country plays an important role in the regional and global energy market due to its ability to provide reliable energy supply. It is noted that despite the significant geographical distance from the main sales markets, Australia occupies a leading position in the export of liquefied natural gas gas not only in Asia – The Pacific region, but also in the world. The territorial differentiation of the export flow of LNG from Australia and their dynamics for the period from 2016 to 2021 is analyzed. It is substantiated that the dynamics of Australia's LNG exports depends on several factors, in particular, the demand for gas on the world market, competition from other countries, the volume of investment in production capacities, level of general technological development and geopolitical factors. Several of Australia's largest LNG projects are explored in detail. The Gorgon LNG project (is one of the largest in the world. The operators are Chevron, ExxonMobil, Shell, and others); the "Wheatstone" project (operator Chevron); the "Pluto" project (operator Woodside Petroleum, one of the largest Australian oil and gas companies); the "Prelude FLNG" project (operator Shell innovative LNG production project, where a floating plant with gas storage and liquefaction is located). Problematic aspects restraining the dynamics of the growth of the liquefied natural gas market in Australia are singled out, the climate factor due to significant volumes of CO2 emissions and non-restoration of natural reserves. Also, problematic issues include price fluctuations in the world market and financial instability, technical problems or infrastructure deficiencies in transportation and storage, significant competition in the world market, etc.

Технологические уклады, инновации и хозяйственное освоение российской Арктики

The article for the first time made an attempt to adapt the theory of technological modes of S. Glazyev and technical and economic paradigms of K. Perez for highly specific conditions of the economic development of the resources of the Russian Arctic (on the basis of its technological dynamics in the industrial and modern era). Based on dozens resource projects that have been deployed in the Russian Arctic in recent decades, the characteristic features of the new technological order (the fifth Kondratiev), which are described by the triad “platform — shift — marine logistics”, are summarized. These features embody the philosophy of the emerging new economic era in the Russian Arctic, which is based on water / air environments, space autonomy, mobility and flexibility of technological solutions. A comparison of the basic characteristics of the modern and the previous (the third and the fourth) technological modes in the Soviet / Russian Arctic was carried out. The mechanism of the resource crisis emergence in the old industrial regions of the Arctic, which usually precedes the formation of a new technological order, is described. The Arctic innovation cycle phenomenon is described as a gap in time between the geological discovery in the depression phase of the previous Kondratiev and commercial development at the stage of the formation of a new technological order. The Yamal LNG project has been identified as a flagship for a new technological paradigm that sets standards of the best practice for the rest of the Arctic and demonstrates a new, previously unattainable level of labor productivity. The key conflict of the modern Russian Arctic is characterized as a contradiction of interests of subsoil users located in different “structural” realities, for access to limited natural resources (licensed areas of gas, oil and coal fields): LNG against pipeline gas, ore gold against placer gold, condensate oil fields against homogeneous fields, etc. The main state support in the Arctic should be provided to mining industries of the fifth and sixth Kondratievs, which have enormous growth potential, but face limitations in the resource base due to competition with other (more technologically archaic) subsoil users.

Russo-Chinese Energy Collaboration and Divergence in the Arctic Ocean Region: from Yamal LNG to Arctic LNG 2

The paper investigates mainly the financial aspects of the Arctic energy projects, as well as the strategic analysis of Russo-Chinese interest in the region. Therefore, the main purpose of this paper is to review the increasing interdependence of the relevant policies of the two countries and the growing Chinese involvement in Russian LNG megaprojects. China-Russia economic and political relationships have many facets, and collaboration in the LNG area is a vivid example of how cooperation between the two nations is built. While Beijing was interested in supplies from the northern neighbor for decades, the economic relationship strengthened when China included Russian LNG projects in the BRI. The project finance framework was chosen to analyze the ongoing Sino-Russian efforts to deliver Yamal LNG and Arctic LNG 2 integrated plants. According to the framework, four areas, namely equity, debt, contracts, and offtakes, are shaped by the efforts of China and Russia. While cooperation in some areas is seamless and mutually beneficial, the results in other ones are less straightforward.

Policy and the Papua New Guinea Liquefied Natural Gas pipeline

Pipelines constructed to carry oil or gas often cross the lands of people who find themselves low on the list of potential beneficiaries of the projects they are hosting. Where rights to benefit are acknowledged, it still may be difficult to confirm the legitimacy of claimants or to find an uncontested method to establish legitimacy. Local-level protests are not uncommon. This problem has been to the fore in Papua New Guinea [PNG]. It is illustrated by contrasting approaches to identifying landowners for the pipeline servicing the PNG Liquefied Natural Gas [LNG] project. We offer suggestions to minimize the likelihood that similar problems emerge with future LNG projects in PNG.

E&P Notes (July 2022)

E&P Notes (July 2022)

Concurrent 3. Presentation for: Examining the challenges and opportunities for Australia as an LNG producer against the backdrop of rising domestic renewables output and global interest in ‘carbon-neutral’ LNG

Presented on Tuesday 17 May: Session 3 A massive global exporter of natural resources, Australia took the crown as the world’s top LNG producer at the end of 2018 and cemented its position in the following years with a slew of new LNG projects. But burgeoning LNG production in rival countries such as Qatar and the US in recent years has put the three countries neck and neck. As a party to the Paris Agreement which advocates climate change, Australia has held fast to its commitment of reducing carbon emissions by increasing the output of renewables such as solar, wind and hydro amid declining domestic gas production. At the same time, the country has attempted to up its ‘carbon-neutral’ LNG offerings in response to a global shift towards decarbonisation and net-zero targets. But what do all these mean for the LNG producing country? Could a rise in renewables output inevitably sound the death knell for the country’s LNG industry, which relies on gas for feedstock? Where does Australia stand in comparison with other countries, particularly Qatar and the US, when it comes to producing ‘carbon-neutral’ LNG? This paper will examine what the recent increase in renewables output in Australia to all-time highs and growing global interest in ‘carbon-neutral’ LNG mean for Australia as an LNG producer, delving particularly into the challenges and opportunities that accompany these developments for the country. To access the presentation click the link on the right. To read the full paper click here

Examining the challenges and opportunities for Australia as an LNG producer against the backdrop of rising domestic renewables output and global interest in ‘carbon-neutral’ LNG

A massive global exporter of natural resources, Australia took the crown as the world’s top LNG producer at the end of 2018 and cemented its position in the following years with a slew of new LNG projects. But burgeoning LNG production in rival countries such as Qatar and the US in recent years has put the three countries neck and neck. As a party to the Paris Agreement which advocates climate change, Australia has held fast to its commitment of reducing carbon emissions by increasing the output of renewables such as solar, wind and hydro amid declining domestic gas production. At the same time, the country has attempted to up its ‘carbon-neutral’ LNG offerings in response to a global shift towards decarbonisation and net-zero targets. But what do all these mean for the LNG producing country? Could a rise in renewables output inevitably sound the death knell for the country’s LNG industry, which relies on gas for feedstock? Where does Australia stand in comparison with other countries, particularly Qatar and the US, when it comes to producing ‘carbon-neutral’ LNG? This paper will examine what the recent increase in renewables output in Australia to all-time highs and growing global interest in ‘carbon-neutral’ LNG mean for Australia as an LNG producer, delving particularly into the challenges and opportunities that accompany these developments for the country.